Coty Inc Stock Price, News & Analysis

Coty Inc. (NYSE: COTY) has announced the appointment of Anna Adeola Makanju and Mariasun Aramburuzabala Larregui to its Board of Directors, effective December 18th. Makanju brings over 15 years of experience in global policy, while Aramburuzabala serves as CEO of Tresalia Capital and holds various board positions.

The board now consists of a majority of women, with seven out of 13 directors. Former director Paul S. Michaels stepped down after five years of service. CEO Sue Y. Nabi expressed excitement about the new additions, emphasizing their passion for beauty.

Coty Inc. (NYSE: COTY) has announced the promotion of Laurent Mercier to Chief Financial Officer, effective February 15, 2021. Mercier has been with Coty since 2017 and previously served as Deputy CFO, successfully increasing operating income in the Luxury division. His promotion follows the strategic separation of Coty's Professional and Retail Hair business. Mercier aims to focus on cost control and sustainable sales growth, while continuing Coty’s financial turnaround. CEO Sue Y. Nabi expressed confidence in Mercier's leadership as the company seeks to strengthen its financial platform for growth.

Coty Inc. (NYSE: COTY) has appointed Stefano Curti as Chief Brands Officer and promoted Alexis Vaganay to Chief Commercial Officer for its Consumer Beauty division. Curti, with nearly 30 years of experience, aims to enhance brand equity and innovation. Vaganay, who has over 20 years in sales and marketing, will develop Coty's commercial strategy for growing market share in color cosmetics and fragrances. CEO Sue Y. Nabi emphasizes that these appointments strengthen the leadership team to reposition Coty's brand portfolio effectively amidst market challenges.

Coty Inc. (NYSE: COTY) completed the sale of a majority stake in its Professional and Retail Hair business, including brands like Wella and OPI, to KKR on November 30, 2020, receiving approximately $2.5 billion in cash. Coty will retain a 40% stake in Wella, valued at $1.3 billion. With this transaction, Coty's financial net debt is expected to decrease from $7.9 billion to $5.0 billion, enhancing its ability to invest strategically. The divestment is part of Coty's transformation plan to streamline operations and focus on core business areas.

Coty Inc. (NYSE: COTY) announced plans to sell its Professional and Retail Hair business, including brands like Wella and OPI, to KKR, expected to finalize by November 30, 2020. KKR will own 60% of the new Wella entity, while Coty retains 40%, valued at $1.3bn. Coty is set to receive $2.5bn in net proceeds, which it aims to use primarily to reduce its Term Loans A and B, thereby enhancing its capital structure. The sale is part of Coty's strategic restructuring, positioning it for future growth.

Coty Inc. (NYSE: COTY) reported a strong financial performance for Q1 FY21, ending September 30, 2020. Despite a 19% decline in net revenues for Continuing Operations, the company improved its revenue trends each month, showcasing over 40 percentage points better performance than the previous quarter. Cost-saving measures resulted in $80 million savings, leading to a 24% rise in adjusted operating income to $81.1 million. The adjusted EPS grew 57% to $0.11. The upcoming Wella divestiture is expected to significantly reduce financial net debt from $7.9 billion to around $5.0 billion, bolstering Coty's financial position.

Coty Inc. (NYSE: COTY) has appointed Isabelle Bonfanti as Chief Commercial Officer, Luxury, and Jean-Denis Mariani as Chief Digital Officer, both effective November 1, 2020. Bonfanti brings over 30 years of experience, particularly in Asia, and will enhance Coty’s Luxury sales strategy. Mariani joins from Guerlain, focusing on digital transformation and global e-commerce growth. The new appointments come amid record e-commerce sales for Coty. Edgar Huber, Chief Commercial Officer, is stepping down after five years but will assist during the transition.

KKR has appointed Annie Young-Scrivner as CEO of the Wella Company, effective upon the closing of KKR's acquisition of 60% of Wella from Coty (NYSE: COTY). Young-Scrivner, formerly CEO of GODIVA, brings extensive experience in brand and digital development. The Wella Company, valued at $4.3 billion, will operate with a management team separate from Coty, serving over 250,000 salons in 100+ countries. The transaction is expected to close by year-end, positioning Wella to capitalize on the $90 billion beauty sector.

Coty Inc. (NYSE:COTY) has launched direct-to-consumer flagship websites for Kylie Skin in the UK, France, Germany, and Australia. This initiative aims to enhance global accessibility and streamline shopping for consumers, who can now shop in local languages and currencies without incurring customs fees. Notably, the brand has experienced rapid sell-outs, with a recent product selling out in just 18 minutes. The launch aligns with Coty’s strategy to bolster its direct-to-consumer model, offering a range of cruelty-free and vegan skincare products.